Replacement of Cash in Transactions
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Questions and Answers

Why are Canadians using cash less?

  • Out of convenience and ease of carrying credit cards (correct)
  • Because they have less money
  • Due to the increase in the use of credit cards
  • Because the Bank of Canada is discouraging the use of cash
  • Why does an increase in the use of credit result in an increase in the money supply?

  • Because it leads to a decrease in the money supply
  • Because credit transactions directly increase the physical currency in circulation
  • As a result of government fiscal policies
  • Due to the impact of fractional reserve banking system (correct)
  • Does the Bank of Canada have complete control over the money supply?

  • No, it has no influence on the money supply
  • Yes, it has complete control over the money supply
  • It has partial control over the money supply (correct)
  • Only under specific economic conditions does it have control
  • How does the Bank of Canada influence the ability of chartered banks to make loans through its open market operations?

    <p>By buying/selling government securities in the open market</p> Signup and view all the answers

    What is the effect on chartered banks if the secondary reserve requirements have not changed for some time?

    <p>Chartered banks will have more freedom in issuing loans</p> Signup and view all the answers

    What technology has contributed to the growing popularity of contactless cards and near-field communication (NFC) for transactions?

    <p>Chip and PIN Technology</p> Signup and view all the answers

    In which form are digital checks processed, indicating the transition from paper checks?

    <p>Electronic Check Processing</p> Signup and view all the answers

    Which type of payments involve the use of apps like Apple Pay, Google Pay, and Samsung Pay?

    <p>Mobile payments</p> Signup and view all the answers

    What has contributed to the rise in the use of cryptocurrencies for certain transactions?

    <p>Blockchain Technology</p> Signup and view all the answers

    Which technology supports direct transfers between bank accounts without physical cash?

    <p>Internet Banking</p> Signup and view all the answers

    What type of cards have widespread use for in-store and online transactions?

    <p>Credit and Debit cards</p> Signup and view all the answers

    Which platform provides P2P services for quick and convenient fund transfers?

    <p>Venmo, Paypal and Similar Services</p> Signup and view all the answers

    What has contributed to the increased usage of prepaid cards for specific transactions without the need for physical cash?

    <p>Reloadable Prepaid Cards</p> Signup and view all the answers

    Which form of payments involve direct transfers between bank accounts without physical cash?

    <p>Electronic Funds Transfer (EFT)</p> Signup and view all the answers

    What technology has enhanced security features for card transactions, contributing to the widespread use of credit and debit cards for both in-store and online transactions?

    <p>Chip and PIN Technology</p> Signup and view all the answers

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